Question

Help Seve & bet sales reported below without any changes in strategy. Monthly sales averaged 42 desk units sales price of $530). les price of $1280) and 23 chairs BUSINESS SOLUTIONS-Computer Furniture Suprant For traded 1.200 $197.50 148,500 Cost of goods sold Gross profit Expenses Sales sons (10) Other Total expenses ses 18. Reflects revenue and expense activity only related to the computer furniture segment Revenue 126 desks S280) 69 chairs $530-516120526570 7850 Cost of goods sold (126 desks $780) (69 chairs $2 $10.500 518 500 Santana Rey believes that sales will increase each month for the next three months (April, 50 desk15 chairs, May 54 desks, 18 chairs: June 5R desks. 41 cha sif selling prices are reduced to $1 for desks and $480 for chaand advertising expenses we Increased by and remain at that level for all three months. The products variable cost will remains for desks and $20 for chairs. The sales statt will continue to earn a 10% commission, the fired manntacturing costs per month will remain at 550.300 and other flored expenses will remain at $6.300 per month Required: 1. Prepare budgeted income statements for the computer furniture segment for each of the month of the expected results from plementing the proposed changes. Use a three column format with one o 2. Recommend whether Santana Rey should implement the proposed changes May and june that show f each month

Answer 1

March 31, 2020 $ 197850 148500 49350 sales Cost of goods sold Guess profit Expenses : l sales Commission Advertising Tupenses other fixed expenses Total ирслад - Net Income 19785 9900 18900 48585 $765 Required Buds Business solutions - Computes frusniture statement Income Statement For months 9 April May and June re T o Sales * I Cost of goods sold " April 75,800 48800 May 81,960 52760 June 116820 56720 Total 274580 158280 - Gross proft 27000 29200 60100 116300 7580 8196 11682 27458 Cron prelit Expenses Saus commission (107 of sales) - Advertising Tupenses (9900f 10- 1d 9900) othes fixed Eupenses ($ 10.300 f 6300) Total Expenses 10890 10890 10890 32670 16600 16600 16600 49800 35070 35686 39172 109928 Net Income (8070) (6486) 20928 6372
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Date Page * sales 480 + 35 chaiss X 1 April = 50 desks X 1180 p 16800 59000 75,800 + 38 x 480 54 X 1180 + 18240 63720 81960 t 41 x 1180 58 X 1180 June + 48380 68440 116820 lost of goods sold May 5487800 t 38 x 280 April 50 x 780 +280 X35 - 48,800 = 52,760 2. June 58 x 780+ 341 X 280 56720 According to my results, Santana implement the proposed changes previous quastes net income was 6372 which is more belles previous one Rey should because in to 765 now it is than